February 07, 2014
Orient Refractories Limited
Total Bank Loan Facilities Rated Rs.400 Million
Long Term Rating CRISIL A+/Stable (Placed on 'Notice of Withdrawal')
Long Term Rating Withdrawal
(Refer to Annexure 1 for Facility-wise details)

CRISIL has withdrawn its rating on Orient Refractories Ltd's (ORL's) cash credit facility from the State Bank of India, on the company's request. ORL requested for the withdrawal of the rating as the bank facility was repaid.
Additionally, CRISIL has placed its ratings on ORL's cash credit facility from HDFC Bank on 'Notice of Withdrawal' for 180 days on ORL's request. The ratings will be withdrawn at the end of the notice period. The rating action is in line with CRISIL's policy on the withdrawal of its ratings on bank loans.

Outlook: Stable

CRISIL believes that ORL will continue to benefit from its established position in the refractory market, supported by its established customer base, and maintain its comfortable financial risk profile on the back of healthy internal accruals and the fact that it has no major capex plans over the medium term. The outlook may be revised to 'Positive' if OAL achieves more-than-expected improvement in its business risk profile, and minimises the vulnerability of its margins to fluctuations in raw material costs. Conversely, the outlook may be revised to 'Negative' if the company undertakes a large, debt-funded capital expenditure programme, or in case of a steep decline in its accruals. given the rising input costs.

About the Company

ORL was established under the de-merger process of refractories from Orient Abrasives Limited (OAL) in 2011.

The Netherlands-based Dutch US Holding BV is a subsidiary of RHI, one of the leading global players engaged in development, production and service of refractory materials. The company has 32 production sites and more than 70 sales and service offices on four continents.

Annexure 1 - Details of various bank facilities
Current facilities Previous facilities
Facility Amount (Rs.Million) Rating Facility Amount (Rs.Million) Rating
Cash Credit 200 CRISIL A+/Stable(Notice of Withdrawal) Cash Credit 400 CRISIL A+/Stable
Cash Credit 200 Withdrawal -- 0 --
Total 400 -- Total 400 --
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Last updated: May, 2013

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February 07, 2014